Rachel Reeves' Tax Hike: A Bold Bet on Britain's Economic Future

British finance minister Rachel Reeves announced significant tax hikes on the wealthy, aimed at funding public service spending without harming the economy. The measures include increased taxes on investments, estates, and foreign income. The move, while supported by the public, risks alienating the business elite.

In a bold financial maneuver, British finance minister Rachel Reeves unveiled sweeping tax hikes on the affluent, asserting this strategy will bolster public services without instigating an economic downturn or a millionaire exodus.

The new measures target the UK's wealthiest with increased taxes on investments, estates, business proceeds, and foreign income. By elevating the capital gains tax to 24% from 20% for higher earners and closing various inheritance loopholes, Reeves aims to accrue an estimated £35 billion by 2030.

Despite potential political backlash for endangering Britain's business-friendly reputation, Reeves maintains these tough decisions will shield ordinary workers from financial shocks, while Labour supporters predict these reforms will avert austerity measures.

(With inputs from agencies.)